Replies to post #90815 on Ocata Therapeutics Inc fka OCAT

[elysse1kittycat]

I agree with what you say 100%.
I know in my own case I was elated in the overnight 89% spike simply because I was not expecting it and because it simply added nicely to the bottom line figure of my other holdings.
If these stocks had not done so well over the last few years and/or I was too heavily invested in Ocata re: what is invested in these companies(not that I don't have a significant number of shares),I might feel differently and cheated as some others do.
That said, my gut feeling told me as a start to take 10% of the chips off of the table just in case-so I did that so far.
Re: what you say about the risk reward ratio, in all honesty, I think that while I really don't believe either will happen, I think there is a greater chance that the stock price will go down quite a bit unless initially if the deal falls through than there is that someone else will immediately up the ante.
My overall conclusion is that the deal will most likely go through at $8.50 with at least some chance that Astellas might up the offer by a buck or so to appease those who are unhappy and who won't tender their shares.

[art2426]

>>>I, for one, believe that there is a far greater chance that a materially higher bid (or bids) will surface than the likelihood that a deal will fall apart and the $8.50 disintegrates. So, to me, $8.50 is a floor and the risk reward balance...<<<

You have echoed my sentiments exactly! I know this (offer of $8.50) has not been characterized as an opening price for negotiation, but it sure seems like one. When, in a negotiation for sale, is the first offer ever accepted? The first offer is almost ALWAYS a "low ball" offer and that is EXACTLY the way this offer of $8.50 must be looked at by all involved. OK a nice starting point, "but I must have a higher price to sell, thank you. I know what I have here and I know the powerful affect it will have scientifically and monetarily, so I cannot accept your offer". That should be our response!